EBAY stock has been on a strong climb recently but may be due to head back south soon, as price is nearing the top of its range on the daily chart. At the same time, the simple moving averages are criss-crossing, which suggests range-bound market behavior.
MACD is indicating overbought conditions, which suggests that sellers could push EBAY stock back down sooner or later. Price could still pop up to the top of the range around the $57/share level. RSI is also indicating a pickup in selling pressure, as the oscillator is already making its way down from the overbought area.
EBAY Stock Outlook
A selloff from the current levels or the resistance at $57/share might push EBAY stock back down to the previous lows at $48/share. A weaker decline might last only until the nearby support zone at $52/share, just around the moving averages.
News that the company has been pulled from the AppStore weighed on EBAY stock prices recently, as this could mean fewer revenue sources. Apparently, Ebay is rethinking its delivery plans, which might not necessarily be in line with Apple’s services.
According to an eBay spokesperson, the eBay Now service is “moving to core.” That is, the service will no longer exist as a standalone application but will instead be folded into eBay’s main mobile app and website.
Bear in mind though that several big-name retailers such as The Home Depot, Target, Macy’s, GNC, Walgreens, Best Buy, Toys R Us, Office Depot, Urban Outfitters, RadioShack and AutoZone have signed up to participate in eBay’s e-commerce platform, which could also be a reason for EBAY stock to keep climbing.
An upside break past the year’s highs around $57/share could mean more gains for EBAY stock moving forward, as this could lead to a test of $60/share before the end of the year.
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